IRS Issues Inflation Adjustments for 2019
Filed under:Tax Strategies
The IRS has issued the new limits and inflation adjustments for 2019 tax provisions in Revenue Procedure 2018-57. Below is a link to the entire notice:
Dozens of tax provisions are adjusted every year, and the following are the top 10 adjustments you have to know:
- The annual gift exclusion for 2019 has not changed and remains at $15,000.
- The Standard Deduction is increasing at all levels:
- $24,400 for joint filers (up $400 from 2018)
- $12,200 for single (up $200)
- $18,350 for head of household (up $350)
- The additional standard deduction amount for the aged or the blind is $1,300
- Personal exemptions are still zero for 2019. This was removed as part of 2018 tax reform.
- Individual income tax brackets have been adjusted for inflation.
- There is no limitation on itemized deductions for 2019. This was removed as part of 2018 tax reform.
- The refundable portion of the child tax credit has not changed and remains $1,400.
- The cost that can be expensed under Section 179 has been increased to $1,020,000, and is phased out once the cost placed in service exceeds $2,550,000.
- The total amount of payments and reimbursements under a qualified small employer health reimbursement arrangement (QSEHRA) has increased to $5,150 ($10,450 for family coverage).
- The threshold for which the Qualified Business Income Deduction begins to phase-out has been increased to $321,400 for joint filers and $160,700 for single filers (up from $315,000 and $157,500).
- The lifetime learning credit phase-out begins at a modified adjusted gross income of $58,000 for single and $116,000 for joint filers (up from $56,000 and $112,000).
You should consult with your tax advisor to see if any of the above adjustments affect you and your tax situation.